The cryptocurrency market is undeniably in a deadlock position between bullish and bearish sentiments in regard to the short-term outlook. Bitcoin price continued to range between $31k and $30k without a clear bullish stance. Having consolidated in the past three weeks, experts believe it is only a matter of time before a Bitcoin breakout in either direction occurs, which should provide a better viewpoint for the altcoin market.
However, there is another way of looking at the market through studying the behavior of large stablecoins holders, even though they belong to exchanges.
Stablecoins Behavior in Relation to Bitcoin Price Action
According to market intelligence platform Santiment, the top two stablecoins, Tether USDT, and Circle USDC, hold a lot of crucial information in decoding the Bitcoin market. From the basic standpoint that a decrease in stablecoins reserve amid rising Bitcoin price is extremely bullish and vice versa, it is then easier to predict the crypto market outlook.
According to Santiment stablecoins study, the whales and sharks have been displaying a bullish outlook as their supply declines on exchanges amid the recent Bitcoin spike. The report further noted that more stablecoins continued to sit in exchanges, which could mean traders’ interest in purchasing crypto assets.
“Contrasting just how similarly the top 10 largest addresses for both assets match up with the overall supply on exchanges, it’s safe to say that most of the largest addresses sit on exchanges at the moment,” Santiment concluded.
